Basics of a Short Sale

When obtaining a short sale the borrower should always attempt to negotiate the lowest possible price the bank is willing to accept.  When the lender and borrower agree upon a short sale price to perform the borrower has to decide whether to solicit the services of a real estate agent or try to sell the home on their own.

Once you have decided whether or not to use a real estate agent your house will be placed on the market.  Potential buyers will place offers on your house. If the best price offered to you is less than the price negotiated with the bank, the borrower should return to the bank and attempt to convince them to accept the lower price.

If the lender/bank chooses to accept the lower price you will be released from all obligations to pay the remainder of the balance. If the lender chooses not to accept the new price the homeowner (you) will face a tough decision.  Do you sell the house and owe the bank the remaining balance, or do you keep the house on the market and wait for a better offer?

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